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Tuesday, August 16, 2005

Medicaid needs a makeover

["Medicaid needs a makeover," NCPA Daily Policy Digest, 15 August 2005.]


Medicaid reform is gaining steam both at the state and federal level, and as this entry from NCPA's Daily Policy Digest shows, the latter can be a big help to the former:

The Medicaid program has deviated drastically from its original mission of covering the poorest individuals. Now some 53 million are enrolled in Medicaid, including 25 percent of all children and two-thirds of nursing home residents. Consequently, state are now looking at solutions to curb the burgeoning cost, says the National Journal.

While the federal government mandates that states cover a certain segment of the population, states enroll "optional" populations as well, resulting in increasing budget pressures. In 2001, the Bush administration responded by implementing a waiver program to allow states to cut benefits and cap enrollment for mandatory populations.

Indeed, John Goodman of the National Center for Policy Analysis argues that Medicaid is too restrictive and that federal rules "make it hard to do sensible things...like to have co-payments or set up HSAs."

Congress will soon look at ways to cut $10 billion in federal spending from the Medicaid budget. Republicans argue that if Medicaid is to survive, it must behave more like the private system.


[Matthew Hisrich, "Staying the Course: Medicaid Reform in Kansas," The Flint Hills Center for Public Policy, February 2004.]

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